(800) 253-1482Personal Property Coverage in Tennessee
Summary: Personal property coverage, or Coverage C, safeguards Tennessee homeowners and renters by covering belongings both inside and outside the home. While standard policies have limits, you can easily boost your coverage to fully protect valuable items. By exploring different coverage options, you can find the right balance of protection and affordability. Comparing carriers and getting quotes helps you save while securing personalized coverage. Estimated Read Time: 3 mins
Just like your home may suffer a loss due to a fire or theft, your personal property needs protection too.
This includes things like costly electronics, pieces of furniture, clothing, and more.
Contents coverage protects items in your home and outside of it, but limits still apply.
Personal Property Isn’t Blanket Coverage in Tennessee
Standard home insurance in Tennessee offers protection for your personal property, but not everything will be covered.
You can customize your protection but personal property coverage is not blanket protection for everything you own.
For example, high-value items like jewelry or collectibles may exceed personal property coverage limits and require extra coverage.
Furthermore, many policies require specific listing for certain items to be included in the protection, such as:
- Commercial property
- Livestock
- Lost possessions
- Pets
- Plants
- Vehicles, ATVs, etc.
- Watercraft
How Much Personal Property Coverage You Need in Tennessee
The right level of personal property coverage varies for everyone, but you need to have enough insurance to cover major losses, like fire damage, based on what's covered by your home or renters policy.
High-value items like art, designer clothing, or jewelry may require extra coverage, as standard limits might not fully protect them.
Appraisals and scheduling or a personal property coverage floater may be necessary for proper protection.
Agents can help choose endorsements with "stated value" coverage and lower deductibles to provide the right protection while managing premiums.
Overall, the right amount of insurance is going to provide you with an affordable premium while protecting against large financial losses you may otherwise not be able to recover from.
RCV Vs. ACV
When selecting personal property coverage, your choice will affect both your premium and the compensation you receive after a claim.
With replacement cost value (RCV) coverage, you can replace lost items with new ones. This "new-for-old" option ensures you get a modern equivalent of the lost item, providing full compensation.
On the other hand, actual cash value (ACV) coverage offers a lower payout by covering only the depreciated value of your items. While it reduces your reimbursement, your insurance premium will also cost less.
When enrolling, consider the value of your belongings, your risk tolerance, and your budget to decide which option is best for you.
Coverage Types
Depending on the policy, personal property coverage can be insured under named perils or all perils.
In Tennessee, an HO-3 homeowners policy provides contents coverage for 16 named perils.
For newer homes in gated communities, an HO-8 form may be available, offering all-risk coverage, as these properties generally carry fewer risks.
All-risk policies cover everything except excluded perils, which are often addressed through separate, additional policies, such as earthquake or flood insurance.
Tennessee Scheduled Personal Property Coverage Explained
A scheduled property floater covers specific items with limits based on appraisals.
Unlike an unscheduled floater, it protects each item individually, offering higher payouts for valuables like jewelry, art, or collectibles.
While this is advantageous for some items, note that you'll have to pay higher premiums for this protection. Here are some examples of when it can come in handy:
- A wedding ring with a 2 ct diamond in a 14 K white gold band appraised at $13,000.
- A Santos de Cartier watch with an appraised value of $7,050.
Unscheduled Property Floater
You can add an unscheduled property floater to cover specific items, such as a firearm, by listing them individually and then having a coverage limit apply to the category as a whole.
These floaters are typically cheaper than scheduled property floaters and can help you protect certain personal items that may otherwise be difficult to find coverage for.
Save on Personal Property Coverage in Tennessee
If you’re looking to increase your personal property coverage, save on home insurance premiums, or find protection for a specific item, be sure to compare carriers.
Get a quote by using the tool below or ask an agent to compare companies near you for personalized coverage from top-rated carriers:
